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    pricing, product design, and advertising

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    The market environment heavily influences corporate decision makeing ability. Discuss the difference in executive decisions concerning pricing, product design, and advertising between a company that exists in a perfectly competitive market and a company that lives in a monopolistic competitive market.

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    https://brainmass.com/economics/supply-and-demand/pricing-product-design-and-advertising-153696

    Solution Preview

    Market structure is typically modeled along a continuum with monopoly at one extreme and perfect competition at the other. You might imagine a market continuum as follows.

    <<Perfect Competition Monopolistic Competition Oligopoly Duopoly Monopoly>>

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    It is probably best to start with PERFECT COMPETITION. A perfectly competitive industry is characterized by three things.
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    1) There are many firms in the market.

    2) Firms produce an identical product.

    3) There are no barriers to entry.

    PRICE
    Because of this we say firms operating in a perfectly competitive ...

    Solution Summary

    Contrast factors such as pricing, product design, and advertising.

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